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57 Cards in this Set
- Front
- Back
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functions of channel intermediaries
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1.buying, forecast demand
2.selling, with sales force supported 3.storage, effective inventory management 4.transportation 5.sorting, most intermediaries buy in large quantities, and break shipment into smaller lots for resale 6.financing, 7.risk taking, risk is inherent in the ownership of the inventory 8.market information, information on assortment, quantity, location and time |
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what is power
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1.the ability to influence somebody to do something they would not have done under their own volition.
2.influence means altering what would have been the course of events 3.power is the mirror image of dependence |
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What is 5 forces?
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Developed by Michael Potter
1.Strength of Barriers to entry, how easy is it for new rivals to enter the industry 2.extent of rivalry between firms, how competitive is the existing market 3.supplier power, the greater the power, the less control the organization has on the supply of its inputs 4.buyer power, how much power do customers in the industry have 5.threat from substitutes, what alternative products and services are there and what is the extent of the threat they pose |
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what is dependence
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dependence = utility X scarcity of alternatives
(utility = value, benefits, satisfaction) |
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source of power
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1.reward power, most important, a benefit given in exchange for compliance in the channel
2.coercive power, ability to inflict punishment 3.expert power, knowledge or expertise that the other channel members lack, require trust, members must be willing to accept 4.legitimate power, legal 5.referent power, other channel members wish to be associated with the company |
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how to develop reward power
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1.praise and reward frequently
2.reward the deserving only 3.be consistent in the distribution of reward 4.do not underestimate the power of intangible rewards |
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how to develop coercive power
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1.walk softly and carry a big stick
2.do not misuse or overuse coercive power 3.be consistent in the use of coercive power 4.user coercive power in private, and reward power in public |
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how to develop expert power
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1.gain valued knowledge and expertise
2.establish yourself as a resource for others 3.share your expertise generously 4.stay ahead of the learning curve |
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legal issues in channel behaviour
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1.anti-trust
2.principle laws, trade practices act 1974, it is illegal to restrict free competition 3.collusive actions 4.dual distribution 5.price fixing 6.price discrimination |
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what is anti-trust
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1.agreements or practices that restrict free trading and competition between business entities
2.abusive behaviour by a firm dominating a market, or anti-competitive practices that tend to lead to such a dominant position |
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what is collusive actions
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you can`t get together with another channel member with the intent of causing harm
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what is dual distribution
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1.must treat all distributors fairly and equally
2.limit the number of distributors in any one geographical area |
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what is price fixing
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it is illegal to get together with one or more competitors to:
1.raise prices 2.lower prices 3.stabilize prices 4.beware: price signaling is also a type of price fixing |
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what is price discrimination
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1.you are not allowed to offer different distributors different prices for the same product (if they compete for the same end users)
2.not illegal per se, but must ensure you are not prohibiting free-enterprise competition |
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how to communicate legally
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1.watch what you say, and write it down
2.there is no such thing as an "off-the-record" conversation, or a "gentleman`s agreement" 3.if you are a market leader, be especially careful about ANY internal communication 4.if a questionable discussion begins, state that you think it is illegal and leave 5.when an anti-trust charge arises, the first to confess might get immunity from prosecution |
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Sun Tzu`s the art of war
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1.detail assessment and planing
2.the challenge 3.positioning 4.forces 5.weakness and strengths |
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why strategy fail
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1.failure to understand the customer
2.inability to predict environmental reaction 3.over-estimation of resource competence 4.failure to coordinate 5.failure to obtain senior management commitment 6.failure to obtain employee commitment 7.under-estimation of time requirements 8.failure to follow the plan 9.failure to manage change 10.poor communication |
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the supermarket internet strategy should focus on what factors
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1.regional competitor, market potential
2.customer demand for the service, cannibalization 3.cost of running the service |
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channel design paradigm
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1.recognize need for channel design decision
2.set and coordinate distribution objectives 3.specifying distribution tasks 4.develop alternative channel structures 5.evaluate variables affecting channel structure 6.choosing the best channel structure 7.select the channel members |
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what is derived demand
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the demand of something which relies upon the demand for another good or service
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difference between b2b and b2c
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1.more money per transaction
2.larger volume purchases 3.number of customers 4.the nature of product, b2b is package including product and service, b2c is product entity 5.the nature of transaction, b2b transaction is the beginning of relationship, b2c transaction is the end |
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how to select intermediaries
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1.find prospective channel members
2.apply selection criteria to determine the suitability of prospective members 3.secure the prospective channel member as actual channel member |
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decisions to make when entering new target markets
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target the right market
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4 pitfalls of market targeting
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1.chasing untried and unproven "blue sky" markets
2.putting too much weight on 3rd party market research reports 3.don`t assume markets can be good or bad by growth rates 4.don`t ignore internal knowledge |
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3 buying situations
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1.new task
2.modified rebuy 3.straight rebuy |
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the buying center (decision making unit) includes
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1.buyer
2.decider 3.user 4.gatekeeper 5.influencer |
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buying center strategy
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1.understand who are the influencers
2.encourage influencers to become champions or advocates 3.often has detailed knowledge of what problems the purchase needs to address |
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negotiation process
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1.preparation, know who you negotiate with, know what information you will disclose, find out as much as you can about the deal
2.wants, know what you want, know what you can concede, have a goal 3.propose, begin with a positive overture to develop rapport and establish mutual interests, start high, be prepare to lose some ground 4.bargain, be prepared to compromise, willingness to compromise will facilitate negotiation, address problems 5.agree 6.document |
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what is BATNA
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Best Alternative To a Negotiated Agreement
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negotiation rules
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1.the magic words "can you do any better?"
2.the goal is to maximise the benefits for everyone 3.final doesn`t mean final 4.sell your proposal 5.make sure you are negotiating with the decision maker 6. don`t impute bad motives 7.make a big deal about what you are giving up 8.don`t make artificial deadlines |
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why advertising
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1.buyers who have a favorable attitude towards the brand by default adopt a favorable attitude towards the salesman
2.buyers exposed to an advertisement prior to a sales can rate the salesperson as being more knowledgeable, more enthusiastic, and capable of offering better service |
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advertising technique
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1.put a benefit in the headline
2.ask a provocative question 3.be direct 4.give or promise the reader useful information 5.use a news or Time related tie-in 6.offer a free booklet or other bait |
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logistic systems
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1.transportation
2.materials handling 3.order processing 4.inventory control 5.warehousing 6.packaging |
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evaluate member performances
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use performance audit
1.developing criteria for measuring channel member performance 2.periodically evaluating the channel members` performance against the criteria 3.recommending corrective actions to reduce the number of inadequate performances |
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e business advantages for sellers
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1.increased sales opportunities
2.decreased costs 3.24/7 sales 4.access to narrow market segments 5.access to global market 6.increased speed and accuracy of information delivery 7.data collection and customer preference tracking |
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e business advantages for buyers
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1.wider product availability
2.customised and personalised information and buying options 3.24/7 shopping 4.easy comparison shopping 5.access to global markets 6.quick delivery of digital products and information 7.access to rich media describing products and services |
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e business disadvantage for sellers
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1.growing competition from other ebusiness
2.rapidly changing technologies 3.greater telecommunications capacity or bandwidth demands 4.difficulty of integrating existing business systems with e-business transactions 5.problems inherent in maintaining e-business systems 6.global market issue: diverse languages, unknown political environments and currency conversions |
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e business disadvantage for buyers
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1.difficulty differentiating among so many online sellers
2.unpredictable transaction security and privacy 3.dealing with unfamiliar, possibly untrustworthy sellers 4.inability to touch and feel products before buying them 5.unfamiliar buying processes and concerns about vendor reliability 6.issues returning products |
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what is price pressures of online business
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cost upward pressure
1.websites cost money 2.online customers service is no longer a competitive edge, it is necessity 3.distribution/shipping costs money 4.customer acquisition costs are high cost downward pressure 1.order processing: self service 2.just-in-time inventory 3.low overhead 4.automated customer service 5.digital product distribution costs lower |
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website design principles
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1.consistency
2.typography 3.portability 4.speed 5.content 6.technology 7.interaction |
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unique characteristics for services marketing
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1.simultaneous production and consumption
2.nonstandardized output 3.perishability, inability to store or stockpile 4.lack of ownership |
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what is services
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broadly defined as acts, deeds, performances, or efforts have different characteristics from goods
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dimensions of services marketing
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1.responsiveness dimension
2.assurance dimension 3.empathy dimension 4.reliability dimension |
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services marketing in channels
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1.intangibility
2.inseparability 3.difficulty of standardization 4.customer involvement 5.perishability of services |
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how to motivate channel members
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financial rewards
1.higher margins 2.extended credit time 3.bonuses 4.reimbursement of expenses non financial rewards 1.contests 2.public recognition for higher performance thru momentos 3.paid holidays at company expense 4.trainings |
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push strategy
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any marketing activity that entices your distributors to sell your value offers rather than those of other producers the channel represents. promotions push your value offer thru the channel
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pull strategy
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motivates the end user to approach your channel of distribution and call out for your value offer
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counterfeit
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product counterfeiting involves any unauthorised manufacturing of goods whose special characteristics are protected as intellectual property rights or trademarks, patents and copyrights.
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grey-market goods
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the flow of goods thru distribution channels other than those authorized or intended by the producer
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knock-offs
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1.consumer knows they are purchasing an obvious fake
2.does little damage to the firm- those who purchase authentic are unlikely to want to purchase a knock-offs |
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types of counterfeit methods
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1.teardowns, genuine products are reverse engineered or blueprints are stolen, aim is to deceive the public, great damage to firm
2.third-shift, aka"midnight shift", produced by original factory, outside of production contract 3.rejects, goods produced that did not meet manufacturers standards, but have not been destroyed |
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protection methods from counterfeit
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1.barcodes, easy to reproduce
2.radio frequency identification devices (RFID), expensive 3.holograms, most often used 4.optically variable devices, gaining popularity |
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counterfeit prevention methods
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1.outpace imitation, quick introduce new products, improve existing products
2.manage imitation, offer licenses or joint ventures to ease demand for replicas |
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what is international business
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1.the exchange of products and services among countries
2.transaction that are carried out across national borders to satisfy the objectives of individuals and organization |
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issue to consider international expansion
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1.gauging international demand
2.adapting to customer needs 3.entry strategies |
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barriers to international business
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1.cultural and social
2.legal and political 3.economic |
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entrying strategies for international business
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1.exporting, indirect or direct
2.licensing 3.franchising 4.foreign assembly 5.joint venture 6.foreign direct investment |
